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GOVERNMENT OF PUDUCHERRY
LABOUR DEPARTMENT
No. 7892/AIL/Lab./T/2019/92.
Puducherry, the 24th January 2020.
ORDER
Whereas, the management of M/s. Swadeshee-Bharathee Textile Mills
Limited (A Government of Puducherry Undertaking), has submitted an application
in Form O-3, dated 06-12-2019 to the Secretary to Government, Labour Department,
Puducherry, seeking permission to Lay-off workmen for a period of 6 months in
respect of M/s. Sri Bharathi Mill, Puducherry, under section 25-M of the Industrial
Disputes Act, 1947, read with rule 75(B) of the Industrial Disputes (Central) Rules, 1957;
Whereas, the views/replies of the Management, Trade Unions and the
relevant documents/issues were examined;
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No.
16
Poudouchéry
Mardi
28
Janvier
2020 (8 Magha 1941)
No.
Puducherry
Tuesday
28th
January
2020
7 0
LA GAZETTE DE L’ETAT
[ PART-I
70
Whereas, on perusal of the Lay-off application, dated 06-12-2019 of the
management, it is observed that the management has stated various reasons for
seeking permission for the extension of Lay-off such as:-
(i) The Company has incurred Accumulated Loss of ` 123.12 crores
(Combined with Swadeshi Cotton Mill-unaudited).
(ii) The SITRA, Coimbatore, has studied the Techno-Economic viability of
M/s. Sri Bharathi Mill, Puducherry and concluded that the Mill is beyond any
kind of financial revival. The existing machineries in the Mill are so old that
they have to be replaced completely. The existing buildings are more than
100 years old and therefore, to house the new machineries, new buildings
will have to be constructed by demolishing the existing ones. Hence, the report
recommended for closure of the Mill.
(iii) The Government of Puducherry constituted an Expert Committee to
study the viability of restoring the financial health, etc., of the State owned
loss making public sector undertaking/autonomous Bodies under the
chairmanship of Thiru B. Vijayan,
I.A.S. (Rtd). The Expert Committee
recommended that the Mill should be closed forthwith under section 25FF of
the Industrial Disputes Act, 1947.
(iv) The Mill has undertaken job conversion work on contract basis from
the year 2014. However, since the Mill was unable to function to its full rated
capacity losses were incurred despite undertaking job works. Hence, at present
the job conversion works are not undertaken and the Mill is in idle status
since March, 2019.
(v) At present, the Mill neither has any job conversion works nor financial
resources for procurement of raw materials to operate the Mill.
(vi) The machineries have become obsolescent and cause frequent
breakdowns, which is tedious to repair any further.
(vii) The Inspector of Factories issued an order, dated 03-01-2020 under
section 40(2) of the Factories Act, 1948 to prohibit the use of shop floor
buildings, including the Blow Room, Carding Section, Drawing section, Simplex
Machine area, Ring Frame Machine area, Cone Winding area, Dye House,
Boiler House, Yarn Godown, etc., as the buildings are in such conditions which
pose imminent danger to human life and safety.
Whereas, on summarizing the above reasons, shortage of financial
resources for procurement of raw materials to operate the Mill, breakdown of
machinery and damaged buildings are the reasons for the proposed Lay-off;
Whereas, on examination of the application, it is found that the management
has applied for permission to Lay-off regular employees and their application
is in accordance with the Industrial Disputes Act, 1947;
And whereas, the management has requested to Lay-off workmen for a
period of 6 months in respect of M/s. Sri Bharathi Mill, Puducherry;
PART-I ]
LA GAZETTE DE L’ETAT
71
online publication at “http://styandptg.puducherry.gov.in”
Published by The Director, Government Press
Printed at: Government Central Press, Puducherry.
Posted at: Puducherry HPO on every Tuesday
Now, therefore, in exercise of the authority delegated vide G.O. Ms.
No. 177/80-Lab., dated 1st September, 1980 of the Labour Department to exercise
the powers conferred by the sub-section (1) of section 25-M of the Industrial
Disputes Act, 1947 (Central Act 14 of 1947), the Secretary to Government (Labour)
hereby grant permission to Lay-off 135 workmen in M/s. Sri Bharathi Mill,
Puducherry, as defined under section 2(s) of the Industrial Disputes Act, 1947
(Central Act 14 of 1947), for a period of 6 months with effect from the date of issue
of the Order.
ASHOK KUMAR,
Secretary to Government (Labour).
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